Florida Auto Insurance Companies
When you are shopping for auto insurance in the state of Florida, it is important to look past price. While price is very important when you are buying mandatory coverage, choosing a company that is dedicated to offering high quality products and excellent service is important as well.
Florida auto insurance companies are not created equal, and learning how to distinguish between the top-rated companies and companies who want to take your money without offering quality service is crucial.
Read on, and learn how you can rate an insurance company yourself so that you never regret the choice that you make. And be sure to try the FREE comparison tool located at the top of this page to start your search for the best deals on auto insurance!
Verify the Financial Stability Ratings of Florida Insurers
The very first step that all consumers should take when they are rating an insurance company on their own is to use financial rating information to distinguish between the financially stable companies and the companies that are the verge of going out of business.
Insurance companies sell financial products that could potentially cost the company millions in claims payouts. If the company does not assess risk properly and charge the adequate premiums, they may end up paying more than they collect from a policyholder.
This may happen from time to time, but the key to underwriting a policy is to avoid this so that the company can stay profitable.
Why is it important to consider financial strength?
You cannot rely on a Florida auto insurer's premium quotations to determine if the company is reputable in the industry. Instead of doing this, you can research the company's credit rating and financial stability ranking through a consumer rating bureau like AM Best Company. This global rating company use financial reports and industry information to assign financial strength and creditworthiness letter grades to auto insurance companies across the country.
By using this information, you do not have to worry about doing business with a company that only strives to earn your business by low-balling premiums and then raising them each renewal. There is nothing worse than leaving your insurer of several years just to find that your rates go up when your policy is issued or when you have been with the insurer for just 6 months.
You also do not have to worry about the insurer purposely denying claims to try and avoid paying out on the legitimate claim because they are struggling to stay afloat.
Ranking the Top-Rated Florida Auto Insurers For Yourself
Now that you know why financial strength and creditworthiness are the two factors that you need to consider before everything else, you need to create a list of companies that you can begin ranking on your own.
To make the process of qualifying companies easier, you must start with a list of companies that do business in Florida and are ranked high in financial strength. Luckily, the Insurance Information Institute already has a list of the top 10 writers of auto insurance developed so that you can begin to do your rankings based on all of the factors that you consider important.
Begin going down the list and do your research by asking the following questions:
Are the customer service reviews positive?
It is only natural for a customer to leave negative reviews when they are not happy with the service they receive anywhere. While you are more likely to put in the effort to report a negative experience, many clients will leave reviews when they are satisfied.
You can use positive and negative unbiased reviews to your advantage as you are qualifying a company. In this modern age, where it is easy to let your voice be heard, locating reviews is easier than ever. Be sure to access reputable sites, and consider the complaints that you see most frequently.
Does the company respond to complaints?
All companies in the insurance industry will have at least a small percentage of dissatisfied clients who will file an official complaint about an insurance product or issues they have had with their claim. It is not always about complaints, but how a company responds to a claim.
You can use the Complaint Comparison tool through the Division of Consumer Services to see the company's complaint count and how it was resolved. If you see several different complaints, it may be a red flag.
What are the available methods of contact?
Not everyone enjoys doing business in the same manner. While more and more people appreciate the convenience of doing business online, some people prefer to speak with a live agent when they are involved in an accident or when they would like to make changes to their policy.
If you like face-to-face service, look for a company with a district office or an agency near your home. If you want to speak with the same person every time you call in, you should choose a brokerage or agency that services all of the policies that they write.
For technically savvy computer users, doing business online may be ideal. Be sure the company has an intuitive online system where you can access your policy 24 hours a day, 7 days a week to review your coverage or make changes.
Does the company offer quick claims payouts?
One of the most common complaints filed against auto insurance companies in the state of Florida is related to claims processing and delays during the claims handling procedure. When you experience an accident, you are in a time of need and you expect your insurer to help you recover from your loss quickly.
After paying monthly premiums for years, there is nothing more frustrating than feeling like your claims representative is stalling to process your claim and issue a check.
It may be easy to file an insurance complaint online, but you want to avoid this all together by choosing a company known for quick and fair claims processing. You can find official complaints through the Consumer Services page, or you can look up rankings elsewhere.
Look for unbiased reviews so that you can learn about the experiences others have had. If you notice that the company makes it difficult to get repairs or that it is hard to reach a representative, this may be a sign to do business elsewhere.
What lines of insurance are offered?
When you own a home, rent or lease to a tenant, you have a need for property insurance. While some consumers choose to buy property insurance from a separate company, there are business to buying multiple lines of insurance with the same company.
If you purchase property, disability, life or other lines of insurance with the same insurer, you can service all of your policies you have in the same phone call to make payments or changes. In addition to convenience, buying multiple lines of insurance may qualify you for discounts off of each policy for added savings.
What discounts does the company offer insurers?
You should always ask your agent for discounts when you are shopping around. As you compare the premiums, be sure that you are receiving all of the discounts that you are eligible for before you switch companies prematurely.
Florida auto insurance companies offers a long list of discounts to keep the cost of policies down and competitive. Some of the discounts that you may be able to qualify for to keep your rate down include: driving record, claims-free, zip code, years of driving experience, prior insurance, annual mileage, marital status and occupation. A single discount or multiple discounts may end up saving you 30 to 40 percent off of your premiums.
What coverage options are available?
All Florida car insurers are required by state mandated laws to offer Personal Injury Protection and all other coverage required in the state. While Personal Injury Protection, Bodily Injury, Property Damage and Physical Damage coverage must be made available to you, everything else is considered additional.
Some insurance companies offer rental car coverage, glass breakage endorsements, towing, lockout and roadside assistance coverage for people who breakdown away from home. Be sure to decide whether or not this is important to you before you bind a policy.
Using Average Premiums and Comparing These Rates to Your Quotes
When you start to comparison shop, it can be helpful to use state premium averages. Florida is ranked number five in the list of the most expensive states to buy insurance. The average expenditure reported is $1,090 per year.
Now that you know the average, you must consider your own personal rating factors to determine if you are more of the average risk or a low-risk client. By comparing rates with several insurers, you can determine which rate is fair.
Knowing about the auto insurance industry is important as you shop for auto insurance. Be sure to consider the reputation of an insurer, their financial strength, and their offerings before you select them. By doing this, you can sift through the sub par Florida auto insurance companies and select a company that offers it all.
Use our FREE comparison tool located at the bottom of the page to start your search today!